7 Mistakes When Trading Crypto That Can "Blow Away" Your Profits

Cryptocurrency Trading offers high profit opportunities but also carries enormous risks. Many new traders and even experienced ones sometimes fall into basic mistakes that can cause their accounts to "evaporate" after just a few unfortunate trades. Let's analyze the 7 most harmful habits and how to overcome them so you can trade more professionally. 1️⃣ Excessive Leverage Abuse Issue: Many exchanges allow leverage up to 50x, even 100x. The higher the leverage used, the smaller the margin (margin), but if the price moves against you by just 1-2%, you can be liquidated completely. Consequence: Losing your entire account with just a small market fluctuation. Detailed solution: Limit leverage to around 2x-5x; with small capital, even trade without leverage to get familiar. Always set a Stop-Loss 1-3% away from the entry point (depending on the project) to cut losses automatically. Use a Trailing Stop order to "moderate" profit margins when the price runs well. Conduct backtesting with a demo account before committing real capital. 2️⃣ Emotion-based Trading Problem: The fear of missing out (FOMO) makes you buy at the peak or panic sell when prices drop. The continuous ups and downs of emotions lead to wrong decisions. Consequence: Losses piled on losses due to lack of discipline. Detailed solution: Build a cryptocurrency trading (Trading Plan) that includes: profit targets, acceptable loss levels, and holding period. Use price alert (alert) tools instead of constantly "watching" the exchange. Apply the Journaling method: record all emotions, reasons for placing orders, and results to learn from experiences. Establish the rule of "Do not place orders when feeling overly fearful or greedy" and respect it. 3️⃣ Weak Security Issue: A series of hacks and phishing emails have caused investors to lose thousands of USD just by clicking on the wrong link. Consequence: Money in hot wallets disappears completely, sometimes it cannot be recovered. Detailed solution: Hardware Wallet (, ví cứng ): Ledger, Trezor… store private keys offline. Two-factor authentication ( 2FA ): Prefer Google Authenticator, Authy instead of SMS. Carefully check the URL, only access exchanges through bookmarks or by typing manually. Regularly update wallet firmware, antivirus software, and do not install ( extension ) from unknown sources. 4️⃣ Blind Trading Copy Issue: Following influencer "tips" and Telegram groups without verification, leading to holding a token that has sharply decreased in value. Consequence: Holding the bag, not knowing when to "cut losses" or "take profits". Detailed solution: Tokenomics: Check total supply, burning mechanism, (vesting) cycle of the project. Development team: Research the LinkedIn and GitHub of the founder and advisor. Roadmap and milestones: How many important milestones has the project completed? Real-world application: Is the token used in DeFi, NFT, gaming... or is it just a "pump-and-dump"? 5️⃣ Revenge Trading ( Issue: Losing and then increasing the position size to… "recover losses". Consequence: Large positions often go against you, causing account burn faster. Detailed solution: After three consecutive losses, stop immediately, take a break for 24–48 hours. Apply the 1% Rule: each trade should only accept a maximum risk of 1% of total capital. Practice mindfulness techniques and breathing exercises to stabilize mindset. Reassess strategy: is there a need to adjust the timeframe, position size, or entry method? 6️⃣ No Specific Strategy Issue: Entering trades when "feeling good", not following the system. Consequence: Poor performance, results depend on luck. Detailed solution: Breakout Trading: Enter when the price breaks through resistance or support with high volume. Swing Trading: Hold positions from a few days to a few weeks, taking advantage of medium-term fluctuations. Range Trading: Trade within a fixed range, buy low – sell high. For each strategy, clearly define entry, exit, stop-loss, take-profit, and volume. 7️⃣ Buy According to FOMO )Social Media Hype( Issue: Viral tweets and videos about the "next big thing" often make you jump in late, with prices having already surged significantly. Consequence: Buying at the peak, then witnessing prices adjust deeply by 20–50%. Detailed solution: Monitor on-chain data: trading volume, inflow/outflow, whaletracking. Wait for the price to retest the important support zone before entering. Use RSI or MACD indicators to identify the overbought region )overbought(. Determine the break-even point and plan strict stop losses. Conclusion Cryptocurrency Trading is not just about "jumping in to buy and sell"; it is an art that combines technical analysis, risk management, and steel discipline. Immediately eliminate the 7 mistakes mentioned, build a clear trading roadmap for yourself, and maintain the habit of regularly reviewing your trading journal. Wishing you success and always preserving your capital.